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We investigate how income inequality affects social welfare in a model of voluntary contributions to multiple pure public goods. Itaya, de Meza, and Myles (1997) show that the maximization of social welfare precludes income equality in a single pure public good model. In contrast, we show that...
Persistent link: https://www.econbiz.de/10011584914
We investigate how income inequality affects social welfare in a model of voluntary contributions to multiple pure public goods. Itaya, de Meza, and Myles (1997) show that the maximization of social welfare precludes income equality in a single pure public good model. In contrast, we show that...
Persistent link: https://www.econbiz.de/10011568762
This paper reexamines results of Konrad and Lommerud (2000). They construct a two-stage game model of a family. We show that their result crucially depends on their linear payoff function and obtain an opposite result if the interaction within a family is represented by a non-linear function;...
Persistent link: https://www.econbiz.de/10005816422